Big pay claim fuels German inflation fear

Germany’s largest trade union demanded an inflation-busting pay rise for its 2.3m members in September 2008, threatening higher labour costs as companies struggle with the slowing economy. IG Metall, the engineering workers’ union, called for a 7-8% increase, its biggest demand for 16 years, defying a warning from the European Central Bank that wage rises could add to inflationary pressure.